An Introduction Of Lean Six Sigma

Published Date: 02 Nov 2017

Lean Six Sigma is a process developmentplatform that chains two ideas: Lean and Six Sigma. In lean, we are talking about theassembly of methodsto reduce the time required to provide products or services. It searched for all kinds of waste in the functions the organization performs. These wastes areusuallyrecognized as non-value-add tasks, process steps, review cycles would probably take away from the essential tasksthat the organization must accomplish. Afterclassifying and eliminatingthese non-value-add activities, the organization decreases costs and shortens the time needed to deliver products and services to its customers.

On the other hand, that is six sigma, we are talking abouttheassembly of methods for refining the quality of goods and services, significantly contributing to meet or more than customer satisfaction. After several experiments from researcher, LSS wasverified that it is a business management strategy that gave efficient helps in organizations operation. Any improvement of organization would be the only survive way in current competitive markets. Therefore, improvement quality of goods or services has become an important business strategy no matter in any industry.Therefore, quality is a competitive device that can show us substantial advantage to organizations. By improving and monitoring quality, the organization is able to dominate their competitors.

In this studied, we would like to deliberate the growth of Lean Six Sigma and explain its major components, and also howLean Six Sigma is frequentlyapplied in business organizations, and the role of statistics and calculationin the process.

2.1 Quality Revolution and TQM

A detailed Six Sigma model which consists of the industry development in the past and its associated impacts on the quality of the process as well as product was provided by Folaron (2003). During 1970s, many US companies had suffered a huge loss of business. This had motivated the implementation of statistical methods which is to measure the quality and business improvement in US and throughout entire world. There were many management systems emerged as a framework to improvequality of products and services. Total quality management was one of the strategies that use to implement and manage quality improvement events within a corporation. Total quality management system was start to be used in 1980s and improved into a wider range of concepts and ideas. For example the culture of the working environment, customer focus, quality enhancement from supplier and other events that drive organization towards the way of improvement in quality. However, total quality management system only accomplished moderate achievement. This is due to there was noeffective integration of the TQM system with business objectives. Other than that,there was insufficienteffortcontributed to the fully utilization of the technical tools which were aimed for variability reduction.TQM did not bring a large success because of the lack of commitment from top management. Other than that, insufficient use of statistical methods as well as low recognition of variability reduction as a fundamental objective also led to failure in TQM. Those companiesemphasized more on widespreadtraining other than focused technical education and this led to the insignificant success of TQM.

Six Sigmais more effective and successful compared to TQM in general. Six Sigma focuses strongly on projects that bring positive impact to businessfinancial performance. When those projects lead to a real savings, widespread ofsales opportunities, or a significantimprovement in customer satisfaction, high level managementwill tend to be involved in the projects, to assign theresources needed for employee training, and to implement Six Sigma in a full-time basis.In general, the technical training of Six Sigma system is in a broader rangecompared to the typicalTQM of the 1980s.

2.2 Origin of Six Sigma

Six Sigma was developed by Bill Smith, a Motorola engineer that used to test for the necessity in enhancing quality and decreasing defects detected in their products. The objective for the Motorola established the Six Sigma is to implement the quality improvement in the process and product. Six Sigma has been expected to reduce the deficiency on those semiconductor devices by 94% between year 1973 and 1993. As a result, one of the functions of Six Sigma is to improve performance of business organisation through the way of quality improvement, costs reduction and expansion of markets for products and services.

2.3 The Six Sigma Metric

Six Sigma can be used to reduce the variation in quality of products which is around particular targeted values to the different level of defects. An assumption should be made that when the production attained the quality level of Six Sigma, the mean of the production process was still subject to some incidentswhich would lead to a shift of mean by as much as 1.5 standarddeviations. A 3.4 parts per million (ppm) non-conforming to targetvalues would be predicted under this condition.As there are some inconsistencies, somehave argued that we can only predict about theperformance when the production is stable. For example, the mean as well as standard deviation are consistent overtime. Hence,the 3.4-ppm metricmight be not reliable if the mean is drifting due to the shift of the mean by more than 1.5 standarddeviations.However,there are no truly consistent systems. Disturbances will occur even in the best scenario and result inthe shifting off-target of the process mean and lead to the rise of the standard deviation. TheSix Sigma process concept is useful to evaluate and measure the process performance. The3.4-ppm metric is recognized and itfocuses onreduction of the target’s variability and eliminating the waste and defects which are an important element of Six Sigma.

2.4The Evolution Of Six Sigma

There are three generations of Six Sigma which are categorized in to Generation I Six Sigma, Generation II Six Sigma, and Generation III Six Sigma. Firstly, Generation I Six Sigma is emphasizingin reducing the defects of products and eliminating variability which is used in manufacturing process. Second, Generation II Six Sigma is remained to focus more on the reducing the variability of process and decreasing defect. However, there was another large effort which aimed to enhance business performance in a way of improving the design of product and reducing cost. Third is Generation III Six Sigma which emphasized in producing value for its various stakeholders. Stakeholders include employee, supplier, clients and community.Generation III Six Sigma can be used to increasethe prices of stock and dividends, job retention, expansion of products and services markets as well as development of new products.

3.1 The Belt System

Green Belts (GBs), Black Belts (BBs) and Master Black Belts (MBBs) are project-oriented approaches that are used in the Six Sigma deployment method. BBs have specialized training for a minimum of 4 weeks but this could be extended to over four months sometimes. The BBs are typically combined with the concurrent work on the Six Sigma project. The lead teams focuses on both quality and business (economic) impact for the organization section of the studied project.

GBs naturally have minimal trainingwhich leads them to be assigned to the role of assist other belts on major project teams. They are sometimes also assigned to lead teams engaged in smaller with more extremelyprecise projects. The MBBs are normally assigned advisory roles such as training BBs and discussing project oriented approach with other MBBs. The role of Champions are relatively varied, they are involved in activities from project definition and selection to developing training materials for other categories. Still, their main area of focus is closely related to business which involves the duty of ensuring the right projects are being selected and pursuit after to ensure maximum profitability. In order to ensure good and constant progress of the teams, it is essential or can be measured by ensuring that the resources which are required for successful project completion are in place and are constantly made available to the teams.

MBBsare generally recognized for their effectiveness in leading successful projects and the BB’s and MBB’s are more efficient when they work full-time and when they work closely with other members in the business leadership team.The BBs and MBBs are required to undergogeneralized training, to have commendable knowledge and know-how on statistical methods but it is the other subtle qualities like passion and character that enables them to as team leaders, project facilitators and technical problem-solvers. Of course having process improvement tools that acts as a platform which will ease the decision-making process will be helpful to them.

3.2 Six Sigma Projects

Six Sigma projects are normally take four to six months which is optimal for them to try to find out their true potential and the impact they have on the business. DMAIC (define, measure, analyze, improve and control) approachis an extremely effective framework which supplements the problem-solving approach used by the Six Sigma. The DMAIC framework usually exploitsthe use of designed experiments, control charts, measurement systems capability studies, process capability analysis and other basic statistical tools.

3.3 Deployment of Six Sigma

The top-down strategy basically is a system that usually breaking down to help get in nearer with its compositional sub-systems. This strategy always leads to greater immediate success in long-run. For the partial deployment strategy which has been use by some organization to start with one or more different specific division and also operating units. Besides that, they are thinning out the operation to another division which realized as successful. Partial deployment usually involves training one to five Black Belts and using their substantial outcome to make the case for full deployment. Others than that, partial deployment is run the risk which is under-supported by top management together with the bottom-up approach. Bottom-up approach is defined as a type of information process that brings together those received data from surroundings that structure to awareness. There are three keys to success such as top management commitment and involvement, use of top talent and supporting infrastructure.

At beginning of events, the top management promise as well as association only wills just giving speeches. To ensure successful, the contribution considerable personal energy of executives is a must. On every manager that under an organization, there must be six sigma on their personal score card. When comes to the best performance which is notices by that organization member, they might become BBs and Champions. Besides that, they might be more sincerely to take part in or involves in every activity or programme from six sigma. In future, they will be tolerating with their colleagues in an organization as well as the prospect business director. For supporting infrastructure part is basically to ensure that the project activity and the benefits of completed projects which can be precisely assessed in a financial system integration.

4.1 Project Selection

Project which is an integral component of six sigma can be known as a key element of quality and process improvement. A project should be well defined and must also be well linked with organization business goal. At the corporate level which is the high level management are more focus on the growth of the corporation and whether it is able to achieve as the business leader in the future. While at the operation level, managers are more emphasize on the work flow of the corporation in order to meet customer needs and to be more efficiency in every aspect. By linking the projects with business unit goal helps to ensure that the best project are been selected. Companies usually use projects to determine the effort and improvement that they had done and the projects that has been called out are focusing on business areas which the opportunities are higher. However, although it is easy to gain success but it is not consort for long term planning. Another widely used approach is creating project based on the strategic business objectives. Projects that develop based on the organization’s business objective should definitely have positive influences towards the company but there is also disadvantage which the large project that the organization carry might only focus on some narrow aspect of the business. In a nut shell, project selection is the most crucial part for any organization to improve in their business process. Project that a company had planned should be given a reasonable time to accomplish.

4.2 The Define Step

The purpose of the Define step of DMAIC is to identify the project opportunity and to verify that it represent legitimate breakthrough potential. One of the main items that must be achieved in the Define step is a project charter. A project charter is something that consist of characteristic of the project and its coverage area, information of the project such as the start and the prediction period to finish the project, potential benefits to the customer, the potential financial benefits to the organization, the role of participants and the early description of both primary and secondary metrics that will be used to measure success and how those metrics align with business unit. Basically, a project charter must be complete in 2 to 4 working days and must try to avoid to widen the scope of the project. Customer’s Critical-to-quality characteristics (CTQs) which will impact by the project must also be identify. One of the useful step to define is by using graphical aids which is process map and flow chart value stream maps and SIPOC diagrams. Lastly, teams must prepare for a review whether it has achieved the particular aspect of the company.

4.3 Measure Step

Through collecting data on measures of the quality, cycle time, and the cost. It can help us to develop a list of the key process input variables (KPIV) and also the key process output variables (KPOV).Time perform the various work activities and the important factors may need the time that work spends wait for additional process. The data that we collected in the measure step can be showed in several ways such as histograms, stem-and-leaf diagrams, run charts, praetor charts and scatter diagrams. It is a necessary to create a proper measurements and a measurement system to record the data. In manufacturing, measurement systems and the data on system performance already exist. To determine the current state or baseline performance of the process, the data that collected are used as a basis. To make sure the team is not attempt to solve a difficult problems when the process performance is fine but the system is flawed, the capability of the measurement system should be evaluate. By using a formal gauge capability study, the measurement system analysis must be done. Lastly, in the last step of the measurement, the team should always update the project charter, recheck the goals and the scope of the project. If the measurement activities show that the individuals will be more valuable in subsequent DMAIC steps, the team can consider to include member of downstream or upstream business units.

4.4 Analysis Steps

The objectives in the analyze step is to determine the quality problems, customer issues, the cycle time through the problems, waste and inefficiency that motivated the project and also the causes of the defects. Separate the sources of the variability into common and assignable causes is very important. Common cause of variability might be the insufficient training for the personnel processing insurance claims. While a failure on a machine or equipment might be assignable cause. Graphical data displays, control charts, hypothesis testing, regression analysis, designed experiments, failure modes and effects analysis are some of the statistical tools that can be used in analyze step. Furthermore, discrete-event computer simulation is also a tool that very useful in the analyze step. In service and transactional business, it is a very useful tool. Analyze tools are used with the previous data that collected in the measure step. To explore and understand the test relationships between and among the process variables and to create the insight about quality process improvements, is the purpose of the Analyze step.

4.5 Improve Step (M. Hasymi Fahriza)

To analyze and arrange the six sigma, an organization or a team must learn to determine what data to look for and how to display these data. This is a basic step in conducting the analysis steps. After performing the steps above, this team should be able to analyze and some related sources to determine how to combine and bindings the data that has been obtained. In this step, a team must put out some creative idea and brain storming about specific changes of the data that has been processed before. If a team performed these steps well, we could see the results of process performance. In the improve step, a team can use several tools to facilitate the process of performance. To redesign the process in improving workflow and reducing congestion using flow charts or value stream maps. Flow charts can also be used to evaluate the performance results were conducted by the team. By using the flow chart can be known specific statistical data and can also determine the optimal combination of factor settings.

If these basic steps have done well, you will see a result that shaped the development of solutions and we can test the solution as the next stage. The test solution is a step that leads to evaluation of the solution, documentation of solution and confirming that the solution achieves project goals. This activity should be done repeatedly to get good results.

4.6 Control Step (M. Hasymi Fahriza)

Control step aims to prove that the benefits are aid in the process, and guide the employees to detect any improvements data that could be implements in the next processes in the similar project. The purpose of the control step is to manage all remaining processed inside the project and to deliver process improvements to the owner of the process along with the control plan and other procedures necessary to prove that the benefits of the project will be instituted.

This step is also important to prove that the original result is still in place and become balancing, so we could get the positive impact from the financial statement. It will be maintained and could spend some benefit to the company. The ability to respond quickly and unexpected failure is a major factor in this stage. If a team have the ability to respond quickly and to identify failures of the members and instantly find a solution, it would be very good impact on the results of a project. This step should also be accompanied by data from before and after the process. The company’s financial statement result should be improved and profitable if the employees doing all the steps well. Planning the control step with arrange the creative system to monitor the solutions that have been processed before, including methods and metrics for periodic audits. Statistical control chart is the main tool used in control measures process. The test solution must be accompanied by a monitoring system to control the testing process

5.0 Other Element Of Six Sigma

In recent years, DFSS and lean system has become the tool to identified with six sigma. There is many organizations regularly use one or both these approaches as an integral part of their Six Sigma implementation.

5.1 Design for Six Sigma

There is many manufacturing use DFSS as a approach for taking the variability reduction and process improvement philosophy of six sigma upstream their production design, where there is new product or services process are design and develop. Besides that DFSS also a structured and disciplined methodology for the efficient commercialization of technology that show result in new product, services, or process. DFSS spans the entire development process from the identification of customer needs to the final launch or implement of the new product or service. Through VOC activities design to obtain customer input which is to determine what customer want, to set priorities based on actual customer wants, and to determine if the business can full fill customer need and wantat a competitive price that will enable it to make profit. By obtained customer interviews, which a direct interaction with and observation of the customer, through focus group, surveys, and by analysis of customer satisfaction data to form a VOC data. The purpose is to develop a set of critical to quality requirements for the product or services.

As traditional , DMAIC is used to achieve operation excellent, while DFSS is focus on improving business result by increasing the sale revenue generated from new products and service and opportunity to finding new application for existing ones. There is many case about the important gain from DFSS is reduction of development lead time; that is the cycle time to design or develop new technology and get the resulting new product t market. DFSS focus on increasing value in the organization. There are many statistical tool are use in operation six sigma are also use in DFSS. The experimental with prototypes and computer models is an area where statisticians can make useful contributions to DFSS.

There is a group of organization practitioners use a variation of DMAIC, DMADV(Define, Measure, Analyze, Design, and Verify), for DFSS. DFSS have make specific the recognition to every decision which is business decision, and that the cost, manufacturability, and performance of the product are determined during design. That is impossible for the manufacturing to make it better when product is design. By focusing in operation six sigma is not enough to improve or achieve any goal in manufacturing, and there is required using DFSS to focus customer requirements while simultaneously keeping process capability in mind. Specifically matching the capability of the production system and the requirements at each stage or level of the design process is essential. When mismatches between process capabilities and designrequirements are discovered, either design changes or different production alternatives are

considered to resolve the conflicts.

5.2 Lean Manufacturing

Lean manufacturing systems are designed to eliminate waste (see Womack & Jones, 1996.)By waste, we mean unnecessarily long cycle times, or waiting times between value-added workactivities. Waste can also include rework, scrap, and excess inventory.Rework and scrap areoften the result of excess variability, so there is an obvious connection between Six Sigma and lean. George (2002) provided a good introduction to how lean and Six Sigma work together. Cycle efficiency, process cycle time, work-in-process, and throughput rate, all is the important metrics in lean.Lean also makes use of many tools of industrial engineering and operationsresearch. One of the most important of these is discrete-event simulation.We also find Six Sigma combined with lean principles and DFSS to be entirely consistentwith Deming’s system of profound knowledge. Six Sigma clearly adopts a systems perspective as it reaches into all aspects of a business. Knowledge about variation, what causes it, andhow to reduce it by identifying cause and effect relationships is at the heart of almost all Six Sigma thinking.